“To provide direct refunds to taxpayers for increased consumer costs attributable to tariffs imposed without congressional authorization.”
No CRS summary available for this bill.
This section states congressional findings that (1) Article I, Section 8 of the Constitution vests exclusive authority in Congress to lay and collect duties and tariffs; (2) duties imposed by presidential action under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) without express congressional authorization increased consumer prices nationwide; (3) the Congressional Budget Office and Joint Economic Committee estimate total consumer costs from such tariffs at approximately $231.35 billion; and (4) Congress has a responsibility to provide direct restitution to taxpayers for these cost increases, prioritizing working families by excluding very high-income taxpayers and using the savings to increase refunds for taxpayers raising children.
This section defines four terms for purposes of the Act: (1) covered tariffs, meaning duties imposed pursuant to presidential action under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) that were subsequently determined to lack congressional authorization; (2) eligible return, meaning a federal individual income tax return filed for the most recent taxable year for which sufficient information is available, including any filing status (i.e., single, married filing jointly, married filing separately, head of household, or qualifying surviving spouse); (3) qualified child, having the meaning given in section 24(c) of the Internal Revenue Code of 1986; and (4) Secretary, meaning the Secretary of the Treasury or the Secretary's delegate.
This section establishes a one-time taxpayer rebate program directing the Secretary of the Treasury to provide direct payments to eligible individual tax returns reporting adjusted gross income of $400,000 or less, with total payments capped at $231.35 billion. The Secretary must determine a base amount by dividing $231.35 billion by the weighted total number of all eligible returns (single and married filing separately returns weighted at 1.0 each, head-of-household returns at 1.5, and married filing jointly or qualifying surviving spouse returns at 2.0 each); payments are then equal to (1) 100% of the base amount for single or married filing separately returns, (2) 150% for head-of-household returns, or (3) 200% for married filing jointly or qualifying surviving spouse returns. (Thus, the per-return payment scales inversely with the number of eligible returns.)
This section establishes a Child Bonus of $125 for each qualified child claimed on an eligible tax return that is not excluded under section 4 due to high income. The bonus is funded solely from amounts saved by that exclusion; together with section 4 rebate payments, total payments are capped at $231.35 billion, with proration of bonuses if funds are insufficient; and the bonus is disbursed with the section 4 rebate to the maximum extent practicable.
This section establishes the method of distribution for payments, requiring (1) automatic issuance using information available to the Internal Revenue Service; (2) payments by direct deposit, paper check, or prepaid debit card; and (3) a simplified filing procedure for eligible individuals who did not file a return for the most recent taxable year.
This section (1) authorizes the Secretary to prescribe guidance, regulations, and procedures necessary to implement the Act and (2) permits the Secretary to round payment amounts to the nearest whole dollar or other administratively practical increment, provided total payments do not exceed $231,350,000,000.
This section directs the Secretary to submit reports to Congress not later than 90 days after enactment and every 60 days thereafter until all payments are distributed. The reports must detail (1) the number of payments issued by filing status under section 4; (2) the number of returns receiving a Child Bonus and the aggregate number of Qualified Children claimed under section 5; (3) the total amount disbursed under sections 4 and 5; and (4) the remaining unobligated balance, if any, under the $231,350,000,000 aggregate limitation.